What is Over-Hedging? Definition, Mechanism, and Example

Over-hedging is a risk management strategy that creates a position larger than the original. Learn how it works and view a ...
Investopedia

Delta Hedging: Definition, How It Works, and Example

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in ...
Seeking Alpha

Hedging With Single Inverse ETFs Part II: An Example Of Tactical Strategy For Downside Protection

Hedging with Single Inverse ETFs appears feasible over medium investment horizons besides daily or very short term horizons. A tactical exposure to Single Inverse ETFs with entries and exits erodes ...
Sacramento State University

Hedging Example (continued)

1. Producer buys Platinum futures at $205. Assume spot price increases in 8 months to $280/ounce. And the price of the contract has increased to $325/ounce. One contract represents 50 ounces. 2.
Sacramento State University

Hedging Example (continued)

The producer would have experienced a $5000 additional cost if he did not buy futures contracts. The net result of this hedge is that the producer has eliminated the potential loss in profits by ...